Setting up a GCC isn't simply about choosing a city in India and hiring employees. Enterprises need to evaluate what capabilities they want to build, which operating model fits, where to locate, how to structure the entity, establish hiring processes, and governance.
Each of these decisions shapes the next, which is why the companies that get GCC setup in India wrong usually made the mistake early, not late.
Before You Set Up a GCC, Define What You Want It to Achieve
The starting question shouldn't be "where should we set up." It should be "what capability are we trying to build." That means defining business objectives, the specific functions the center will own, expected scale, the talent profile you need, and the KPIs that will tell you whether the center is working.
This matters more now than it did five years ago. Newer GCCs are increasingly smaller and specialized, often built around AI, product engineering, or a single high-value function, rather than large, headcount-driven back-office units. A clear capability roadmap and business case upfront prevents the center from drifting into a generic delivery unit later.
Also Read: What is a Global Capability Center? Quick Guide for 2026
Choose the Right GCC Operating Model
Once the capability is defined, the next decision is ownership structure. A Captive model means the company owns and runs the center from day one. Build-Operate-Transfer means a partner builds and runs it first, transferring full ownership once it's stable.
A Hybrid model splits ownership by function, some run in-house, others managed by a partner, letting companies scale specific capabilities faster without a full in-house build for every function.
The right model depends on prior India experience, timeline, and how much control the work genuinely requires, not on which model competitors happen to be using.
The right model depends on prior India experience, timeline, and how much control the work genuinely requires, not on which model competitors happen to be using.
Choose the Right Location for Your GCC
Location shouldn't start with a ranking list of Bengaluru, Hyderabad, or Pune. It should start with which city's talent pool matches the function being built. JLL's newest GCC in Hyderabad is a clear example: the company cited Hyderabad's STEM talent pool, with over 2.5 million graduates entering the market annually, and the city's strength in specialized sectors as the deciding factors for a center focused on analytics, technology-enabled operations, and finance.
Cost, infrastructure, existing GCC density, and state incentives all matter too, but they should narrow a shortlist the function has already defined, not drive the decision on their own.
Establish the Legal, Tax, and Compliance Foundation
This is where generic GCC content usually stops short. A real setup requires legal entity registration, tax registrations, transfer pricing documentation, employment compliance, data protection alignment, banking relationships, intercompany agreements, and sector-specific regulatory requirements. None of these are optional and getting them wrong early is expensive to unwind later. This is also the stage where the operating model chosen earlier matters most, a BOT partner typically absorbs much of this work, while a captive setup means the company owns it directly.
Build the Team and Infrastructure
Two tracks run in parallel here. On the people side, that means GCC leadership, the initial core team, talent acquisition, HR policies, and workforce planning. On the infrastructure side, that means office space, IT systems, cybersecurity, connectivity, and workplace tools. Entity formation, hiring, infrastructure, and compliance consistently show up as the core execution stages across serious GCC setup processes, skipping ahead to hiring before the entity and compliance foundation is in place is one of the most common causes of early delays.
Launch, Stabilize, and Scale the GCC
Opening the office isn't the finish line. A GCC's real trajectory looks like launch, stabilize, measure, improve, then scale. That means establishing governance early, measuring performance against the KPIs set at the strategy stage, integrating processes with the parent company, and expanding functions only once the initial team has proven capability. Acumatica's Hyderabad GCC follows exactly this pattern, launching with a focused engineering and product development team, with expansion into additional functions planned as the center matures.
Common GCC Setup Mistakes to Avoid
The most frequent mistakes are predictable: choosing a city before defining the capability, hiring before deciding the operating model, treating the GCC purely as a cost center, underestimating compliance complexity, scaling headcount without a capability roadmap, and failing to set up clear governance between headquarters and the GCC from the start. Each of these is avoidable with the right sequencing, which is exactly why sequencing matters more than speed in the early stages.
What Does a Successful GCC Look Like?
We all know that GCCs have broken the misconception of just being an offshore team or center. It becomes a strategic extension of the enterprise, one that is capable to delivers measurable business outcomes, and increasingly contributes to global innovation and decision-making, not just execution. That's the direction India's GCC market is already moving, and it's the outcome worth designing for from the very first decision.
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FAQs
What are the first steps to setting up a GCC in India?
The first step is defining the business objectives, functions, and scale the GCC needs to deliver, before choosing a location or operating model. Companies that start with location or hiring instead of strategy tend to build centers that drift from their original purpose.
How long does it take to set up a GCC in India?
A lean, function-specific GCC can go live in 8 to 12 weeks with the right partner, while a full-scale, multi-function center typically takes 6 to 9 months from decision to first day of operations.
Which GCC operating model should I choose for setup in India?
The right model depends on prior India experience and risk tolerance. Captive suits companies wanting full ownership from day one, Build-Operate-Transfer suits first-time entrants wanting reduced setup risk, and Hybrid suits companies that want to scale specific functions through a partner while keeping others in-house.
How do I choose the right city for a GCC in India?
Location should be matched to the function being built and its talent requirements, not chosen from a generic ranking list. Cost, infrastructure, and state incentives should narrow a shortlist the function has already defined.
What compliance requirements are involved in setting up a GCC in India?
Setting up a GCC in India involves legal entity registration, tax registrations, transfer pricing documentation, employment compliance, data protection alignment, banking relationships, and intercompany agreements, in addition to any sector-specific regulatory requirements.
What are the most common mistakes companies make when setting up a GCC in India?
The most common mistakes are choosing a city before defining the capability, hiring before deciding the operating model, treating the GCC purely as a cost center, underestimating compliance complexity, and scaling headcount without a clear capability roadmap.